Final Results, Notice of AGM, Director Resignation

RNS Number : 5861X

Chesterfield Resources PLC

30 April 2019

 

Chesterfield Resources / EPIC: CHF / Market: LSE / Sector: Mining

30 April 2019

Chesterfield Resources Plc (the 'Company', 'Chesterfield')

Final Results, Notice of AGM and Director Resignation

Chesterfield Resources plc is pleased to announce its final results for the year ended 31 December 2018.

FINAL RESULTS

Chairman's Statement

"Chesterfield Resources plc has made significant progress in its operations since the last Chairman's letter to shareholders, a little over six months ago.

By way of recap, in July 2018 Chesterfield re-admitted as a Standard Listing on the main board of the London Stock Exchange. This was to effect an acquisition of HKP Exploration Limited, which held a number of mineral exploration licences in the Republic of Cyprus. In the third quarter of 2018 the Group commenced a preliminary drill campaign on a number of targets namely Evloimeni, Mavroyi, Magouda, Double Seven and Ayia Saranta.

Progress report for the last six months

The Company completed 3,097m of its drilling campaign in the last quarter of 2018 on several targets in its Troodos West Exploration area. From a preliminary analysis of core, the Board of Directors took a decision to greatly expand the Group's land package in Cyprus. There were numerous intersections of 1-2% Cu and also a surprising amount of gold, with many intersections assaying at 1-2g per tonne. There was a geological surprise also, with the discovery of more recent epithermal systems alongside the well-established Cyprus-type Volcanogenic Massive Sulphide ("VMS") mineralization. This means that copper-gold+/-zinc mineralisation can be hosted in two different types of system

The operations team was asked to focus its attention on identifying new minerals rights land packages for the Group to apply for. Because the permits were available directly from the authorities in Cyprus they were relatively inexpensive and easy to acquire. Thus, it made sense to secure first mover advantage by submitting applications over the most promising licence areas still available. The programme of new land applications was completed at the end of February 2019, almost quadrupling the Group's total land position to 237 km². This made Chesterfield by far the largest holder of mineral rights in Cyprus. The new licence areas expanded the Group's position along both the northern and southern flanks of the Troodos mountains in the most prospective volcanic belt.

In addition, more prospecting permits were also granted on the Group's existing batch of applications at Troodos North. I am pleased to report the current portfolio of approved prospecting permits now totals more than 50 km².

In order to run this significantly expanded exploration programme, the Group recruited Mike Parker as Chief Operating Officer in January 2019. Mike brings a huge amount of experience to Chesterfield. Prior to joining our Group, Mike had a 20-year career for First Quantum. He was a key player in making two major copper discoveries for First Quantum and was its Country Manager for DRC and then Peru.

To provide a first sweep of our greatly enlarged exploration area, we commissioned a remote sensing survey, using both the Astra and the Sentinel 2 satellite platforms. The survey uses both high resolution satellite photography and also data from the non-visible spectrum using specially calibrated satellite sensors. The survey is able to identify geological faults that may control mineralization and associated rock alterations due to hydrothermal activity. The satellite data was interpreted using a specialist company in the US. It has allowed us to rapidly reduce our search areas to a number of specific targets, which would otherwise have taken many of months of field work on the ground. The survey has also identified targets outside of our exploration licence areas and, as a result, we may submit applications for further licences.

The Group has built a strong field team in Cyprus. This includes three graduates from Camborne School of Mines (CSM). We are pleased to have built a good relationship with one of the premier mining schools in the UK. We recently hosted a field visit in Cyprus for CSM's third year students and will shortly be taking in two of its Master's students on internships in Cyprus. It is important to us that we are well integrated into the local community. We now have employ four part-time Cypriot geologists on the team, have good relationship with the Mine Services department and we also employ contractors from the villages we operate around.

The team has been involved in an intensive period of data collection over the last few months. There is a very large volume of historical data in Cyprus, both from the period of mining in the 1960s and 1970s, and various exploration and study projects since. Sifting through this and digitising the most relevant information has been a meticulous but rewarding process. The team has spent much time in the field mapping and sampling the areas of greatest interest. The various layers of information are being collated into the Group's geographic information system (GIS).

We have also made some corporate changes in Cyprus. PKF Savvides & Co Ltd have been appointed as our local auditors, Hive Management Services Ltd has been appointed as our in-country accountants, and we have changed the name of HKP Exploration Limited to CRC Chesterfield Chesterfield Resources (Cyprus) Limited.

We are looking forward to an active period ahead. The operations team has been conducting intensive field studies on several targets which we will shortly be further investigating using geophysics. The Group has a diamond drill in storage at our core shed in Cyprus and we expect to be drilling again soon. We have been careful to ensure we have completed detailed examination of each target before moving onto the most costly process of drill testing of targets.

Outside of the exploration there are a number of other opportunities that the Group is investigating that could yield near-term revenue potential. It is our intention to grow the business through joint ventures and new projects as these opportunities arise.

Having worked hard to build our land position in Cyprus, operations team and data sets, the Group now has a strong target list in final stages of preparation. We now also feel in a position to start releasing information regarding the Group's operations and prospects more actively to the stock market. The shares are becoming more actively traded and the price stronger. We will be using various channels of communication to raise the profile of the Group. This will be accompanied by a more professional web site and revamped presentation. Chesterfield is entering an exciting phase of its growth and I look forward to bringing you regular news over coming weeks and months.

Director's Resignation
David Hall, one of our directors, has decided not to stand for re-election this year. David is involved in a number of different junior resource projects, both listed and unlisted. Having helped shape our venture in Cyprus, he has now found many demands on his busy schedule. We would like to thank him for his hard work and wish him the best of luck.

Financial Review

The loss before taxation of the Group for the year ended 31 December 2018 amounted to £689,367 (period ended 31 December 2017: £111,012). 

The Group's cash position at 31 December 2018 was £1,885,726 (2017: £1,184,424). 

In July 2018 the group raised £2,000,000 by issuing 26,666,667 new ordinary shares of 0.1 pence at a price of 7.5 pence per share. The funds raised is to primarily support the continued exploration of various license areas in Cyprus.

Outlook

I would like to thank our shareholders for their support, we are lucky to have a strong and supportive base of investors and we hope that the coming months and years will continue to be value accretive for all our stakeholders."

Group Statement Of Comprehensive Income

For the year ended 31 December 2018

Continuing operations	31 December 2018 £	31 December 2017 £
Administrative expenses	(689,367)	(111,012)
Operating Loss	(689,367)	(111,012)
Loss before taxation	(689,367)	(111,012)
Income tax	-	-
Loss for the Period attributable to owners of the parent	(689,367)	(111,012)
Basic and Diluted Earnings Per Share attributable to owners of the parent (expressed in pence per share)	(1.524)	(1.01)

	31 December 2018 £	31 December 2017 £
Loss for the period	(689,367)	(111,012)
Other Comprehensive Income:
Items that may be subsequently reclassified to profit or loss
Currency translation differences	6,181	-
Other comprehensive income for the period, net of tax	(6,181)	-
Total Comprehensive Income attributable to owners of the parent	(683,186)	(111,012)

Statement of Financial Position

For the year ended 31 December 2018

	31 December 2018 £	31 December 2017 £
Non-Current Assets
Property, plant and equipment	13,891	-
Intangible assets	1,156,429	-
Investments in subsidiaries	-	-
	1,170,320	-
Current Assets
Trade and other receivables	77,067	44,683
Cash and cash equivalents	1,885,726	1,184,424
	1,962,793	1,229,107
Total Assets	3,133,113	1,229,107
Non-Current Liabilities
Deferred tax liabilities	(127,450)	-
	(127,450)	-
Current Liabilities
Trade and other payables	(89,138)	(51,286)
Total Liabilities	(216,588)	(51,286)
Net Assets	2,916,525	1,177,821
Equity attributable to owners of the Parent
Share capital	159,933	126,600
Share premium	3,534,597	1,157,873
Other reserves	22,374	4,360
Retained losses	(800,379)	(111,012)
Total Equity	2,916,525	1,177,821

Group Statement of Changes in Equity

For the year ended 31 December 2018

	Attributable to owners of the Parent
	Share capital £	Share premium £	Other reserves £	Retained losses £	Total £
Balance on Incorporation on 4 January 2017	-	-	-	-	-
Loss for the period	-	-	-	(111,012)	(111,012)
Other comprehensive income for the period
Items that may be subsequently reclassified to profit or loss
Currency translation differences	-	-	-	-	-
Total comprehensive income for the period	-	-	-	(111,012)	(111,012)
Proceeds from share issues	126,600	1,274,000	-	-	1,400,600
Issue costs	-	(116,127)	-	-	(116,127)
Share based payments	-	-	4,360	-	4,360
Total transactions with owners, recognised directly in equity	126,600	1,157,873	4,360	-	1,288,833
Balance as at 31 December 2017*	126,600	1,157,873	4,360	(111,012)	1,177,821
Balance as at 1 January 2018	126,600	1,157,873	4,360	(111,012)	1,177,821
Loss for the period	-	-	-	(689,367)	(689,367)
Other comprehensive income for the period
Items that may be subsequently reclassified to profit or loss
Currency translation differences	-	-	6,181	-	6,181
Total comprehensive income for the period	-	-	6,181	(689,367)	(683,186)
Proceeds from share issues	26,666	1,973,334	-	-	2,000,000
Issue costs	-	(89,943)	-	-	(89,943)
Share based payment	-	-	11,833	-	11,833
Shares issued on business combination	6,667	493,333	-	-	500,000
Total transactions with owners, recognised directly in equity	33,333	2,376,724	11,833	-	2,421,890
Balance as at 31 December 2018	159,933	3,534,597	22,374	(800,379)	2,916,525

Group Statement of Cash Flows

For the year ended 31 December 2018

	Year ended 31 December 2018 £	Period ended 31 December 2017 £
Cash flows from operating activities
Loss before income tax	(689,367)	(111,012)
Adjustments for:
Depreciation and amortisation	2,864	-
Share options expense	11,833	4,360
Intercompany charges	-	-
Foreign exchange	6,158	-
(Increase)/Decrease in trade and receivables	17,350	(44,683)
Increase/(Decrease) in trade and payables	(56,946)	51,286
Net cash used in operating activities	(708,108)	(100,049)
Cash flows from investing activities
Cash acquired upon acquisition	1,744	-
Interest received	-	-
Purchase of property plant and equipment	(16,755)	-
Loans granted to subsidiary undertakings	-	-
Exploration and evaluation activities	(485,636)	-
Net cash used in investing activities	(500,647)	-
Cash flows from financing activities
Proceeds from issue of share capital	2,000,000	1,400,600
Transaction costs of share issue	(89,943)	(116,127)
Net cash generated from financing activities	1,910,057	1,284,473
Net increase in cash and cash equivalents	701,302	1,184,424
Cash and cash equivalents at beginning of period	1,184,424	-
Exchange gain on cash and cash equivalents	-	-
Cash and cash equivalents at end of period	1,885,726	1,184,424

DIRECTOR RESIGNATION

Non-Executive Director David Hall has today announced his intention to resign from the Board to focus on his other business interests. His resignation will come into effect following the Company's AGM. The Board would like to thank David for his contributions to the Company.

NOTICE OF AGM

The Company also gives notice that its Annual General Meeting ('AGM') will be held on June 5th at 11am. at The Washington Mayfair Hotel, 5 Curzon Street, London, W1J 5HE.

Copies of the Notice of AGM, together with the Form of Proxy and the Annual Report will be posted today to shareholders and will be available to view on the Company's website at www.chesterfieldresourcesplc.com

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About Chesterfield Resources Plc

Chesterfield Resources is a copper-gold exploration and development Company active in Cyprus. The Company generates value for shareholders by discovering and developing multiple deposits to production. Chesterfield is currently progressing its Cyprus Project.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

 For further information, please visit www.chesterfieldresourcesplc.com or contact:

Chesterfield Resources plc:

Martin French, Executive Chairman            Tel: [phone]

Shard Capital (Broker):

Damon Heath                                                    Tel: [phone] 

 

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